Horrible Delicious Bank Stock Collection BOOK I, Want To Try?

Jakarta, CNBC Indonesia The Financial Services Authority (OJK) stated that there will be many BUKU I banks (business group commercial banks, with a core capital of IDR 100 billion-IDR 1 trillion) that will merge to meet the minimum capital requirement of IDR 1 trillion this year and IDR 3 trillion in 2022. .

What is the potential for bank stocks with insufficient capital to carry out this corporate action?

Is it better to look from the side, or is it better to try your luck and get into these stocks while their status has not been upgraded from BUKU I Bank to BUKU II Bank (core capital IDR 1 trillion-IDR 5 trillion)?

“Horrified delicious”, perhaps the phrase popularized by the late politician Sutan Bhatoegana is the most suitable to describe the potential and risk of collecting shares in Bank BUKU I.

The horror of collecting BUKU I Banks is due to the OJK ultimatum that if BUKU I banks cannot meet the core capital requirement of more than IDR 1 trillion by the end of the year, the bank will bedowngrade became the People’s Credit Bank (ACA).

This will create new problems because according to OJK regulations, BPRs cannot be owned by foreign investors so that the status of this downgraded bank in the capital market will be a question mark?

Will the regulator later provide a special notation for shares that cannot be purchased by foreign investors and foreign investors who have already entered must be bought back by the company?

Or forced to sell their stake in the market?

Everything is still a question mark.

In fact, it is not impossible that the downgraded bank shares will be ‘kicked’ from the alias stock exchange delisting.

When di-delisting of course investors will lose big because when this happens involuntary delisting then the issuer does not have to buyback public shares, so that later your shares will be converted into scrip and cannot be transacted again on the IDX.

Horrible isn’t it?

But do not forget there is a sweetness behind this horror.

The pleasure of collecting mini bank shares is when it turns out that there are strategic investors who have injected funds and it turns out that these investors are big-scale investors, then it is not impossible that the bank’s share price will jump hundreds of percent.

Take, for example, the shares of PT Bank Jago Tbk (ARTO) which used to be called Bank Artos.

ARTO shares had soared 3,416% or 34 times its highest level after the company reported startup Gojek giants will be ARTO’s strategic investors.

Based on CNBC Indonesia’s records, several banks that are chasing additional capital obligations if they don’t want to go down class include BPD Banten, BPD Central Sulawesi, BPD Lampung, PT Bank Harda Internasional Tbk (BBHI), PT International Business Bank Tbk (BBSI), PT Bank Pembangunan Daerah Banten Tbk (BEKS), Bank Fama, and BPD Bengkulu.

This means that there are three shares of BUKU I Bank whose shares can be collected by risk-loving investors, namely BBHI, BBSI, and BEKS.

Bank Harda only has core capital of IDR 272.03 billion as of June 2020. Thus, in the next 2 months, the company is required to increase its capital of at least IDR 728 billion.

WhereYemen BBHI senot yet revealed that they are still in the process of exploring with several strategic investors who are ready to inject capital into the company this year.

“The total must be Rp 1 trillion, now the core capital is around Rp 300 billion. There is also an OJK regulation regarding consolidation,” he said. Director of Bank Harda, Harry Abbas, to CNBC Indonesia.

The plan to increase Bank Harda’s capital is targeted to be realized this year, but it has not been able to provide information related to potential strategic investors.

As for the company’s Business Bank next month will ask for permission from the EGMS to do so right issue which will be held before the end of the year to meet the core capital obligations of the OJK.

Long story short, if you are a conservative investor who puts his funds in good fundamental stocks that have bright business prospects, mini bank stocks are not for you.

However, if you are an investor who likes to speculate and think that the benefits that will be obtained when collecting these small banks are greater than the risks, then Book I bank shares may be for you.

But again, it’s all back on the investment horizon, and your budget.

CNBC INDONESIA RESEARCH TEAM

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How many Colombians are banked and how much use their products – Financial Sector – Economy


Colombia achieved the goal of having 85 percent of its adult population banked two years ahead of schedule, after more than 1.6 million adults entered the financial system for the first time in the first six months of 2020, through the opening of a savings or credit product, which, in addition, they are using more frequently.

Until the 6th month of this year, 31 million Colombians were banked, said Freddy Castro, director of the state Banca de las Oportunidades program, with which the country achieved a financial inclusion rate of 85.9 percent, close to one percentage point above the goal established in the Development Plan for 2022 (85 percent).

(Can read: Household consumption in September was higher than the same period in 2019)

This effort will help Colombia continue to lead the ranking of emerging economies that provide greater access to the financial system to its people (Global Microscope) of the Inter-American Development Bank (IDB) and other international entities.

With 82 percent financial inclusion, last year the country surpassed Peru, Uruguay, Mexico, India and Brazil, among others, according to the Global Microscope 2019.

The restrictions generated by the covid-19 pandemic, which arrived in the country at the end of last March, were a great catalyst not only in the process of financial inclusion in the country, but also for people to make greater use of their products , many of which were inactive before the quarantine measures were decreed.

“In particular, the evolution of the usage indicator grew by more than 4 percent between March and June, while in the first quarter this was 0.8 percent,” they indicate in Banca de las Oportunidades.

(Further: The cities of Colombia with the highest and lowest poverty and inequality)

Product use grows

In fact, the entity reported that as of June 2020, some 2.3 million adults used products that were inactive last December, and that for the first half of this year, 25.8 million Colombians had active products in the system financial, which is also a good sign compared to the goals that the Government has set on that front.

This percentage of Colombians reached 71.6 percent, 5.6 percentage points above the figure recorded last December and 5.4 below the goal set for the four-year period.

Recent figures from the Financial Superintendency show the dynamics brought about by the use of financial products and the channels that entities have arranged, especially in the current pandemic situation.

During the business days of the quarantine, that is from March 25 to October 2, financial clients in the country have carried out about 1,119 million monetary operations worth more than 2,393 billion pesos, says the Superfinanciera.

(We suggest: Congress approved extension of payroll subsidy until March 2021)

Electronic channels, the entity warns, continue to be the most used in the midst of this situation. The growth of the internet, mobile banking, banking correspondents and dataphones, among others, mark an average rate above 150 percent, compared to a normal day.

“On this front, the country brought a positive dynamic that, under the pandemic scenario, has deepened especially in access and use of digital financial services, as a result of coordination between the financial system and government entities. This leap confirms that the digital transformation has no reverse, ”said Castro, from Banca de las Oportunidades.

He added that the government’s cash transfer programs, such as Ingreso Solidario and Compensation of VAT, have played an important role.

The former got more than 759,000 beneficiaries to activate their deposit products or open one for the first time. The second allowed more than 99,000 people to reactivate or open a deposit product, most of these digital.

(We recommend you read: The four sectors that Bill Clinton highlights to invest in Colombia)

In March, 2.3 million adults with Simplified Transaction Accounts (Cats) and 2.7 million users of active Electronic Deposit Accounts (CDE) were registered. Three months later, the first product had 4.3 million active holders, while the second climbed to 7.4 million users.

“In this government we have accelerated the execution of cash transfer programs and for this reason about 90 percent of the households in conditions of poverty and economic vulnerability have access to some scheme. Without a doubt, we are laying the foundations of modern social policy and building equity through the provision of financial services, ”said Luis Alberto Rodríguez, director of the National Planning Department (DNP).

Despite progress in this area, there are still pending tasks to be carried out on this front, especially in rural and remote areas of the country.

It is estimated that more than 5 million Colombians today remain outside the financial circuit, towards which state strategies point so that they not only become part of it, but also have access to the services provided by the entities.

A first initiative, in this sense, seeks to expand the network of banking correspondents by 1,600 points. The country has about 145,000. 7,000 million pesos will be invested in the next two years and for this it sealed an alliance with the cooperative sector.

The first 100 points will be operated by eight cooperatives and will allow clients in the cooperative sector to make payments, withdraw money, access financing and purchase insurance.

(Further: The 5 countries most interested in investing in housing in Colombia)

The four strategies to advance inclusion

Although progress in financial inclusion is significant, the Government is convinced that if these indicators are not consolidated in the future, the task will remain half done.

For this reason, two weeks ago a Conpes was approved that establishes the route to follow, with four specific strategies.

The first is the expansion of the offer of tailored financial products and services, promoting digital correspondence, whose purpose is to reach the excluded population and remote regions. There will be agricultural credit and microfinance plans, with a focus on small producers and rural women.

The second, promotion of financial education. It seeks to develop the skills, knowledge and confidence of Colombians in the financial system, and to encourage the use of banking services.

(To continue reading: The most searched job profiles in Colombia, according to LinkedIn)

The third is the optimization of the financial infrastructure, which will allow regulatory changes to streamline the open banking process, increase the impact of the new regulation on the low-value payment system and strengthen digital authentication services.

Lastly, the institutional structure of this public policy will be modified to generate better synergies between public and private actors.

ECONOMY AND BUSINESS

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Banking Profit Is Easing, OJK: Banks Cannot Cover Interest Costs

TEMPO.CO, Jakarta – Profits banking In August 2020, there was still a deep decline due to slower credit growth and significant growth in public funds. Based on the material of exposure Financial Fervices Authority (OJK), banking profit before tax was cut by 18.36 percent on an annual basis (yoy) in August this year.

Chairman of the OJK Board of Commissioners Wimboh Santoso said the national economy was severely affected by this year’s pandemic. The negative impact that occurs in the real sector will also be felt by the financial sector.

“The profitability we saw this August fell. Banks cannot cover costs flower, “he said, Friday, September 25, 2020. This is in line with credit growth per August this year of only 1.04 percent, even slower than the previous month which was only 1.53 percent. Meanwhile, the growth of third party funds is still quite strong, even reaching 11.64 percent yoy.

In the previous month, banking profitability was also cut by 18.99 percent yoy. Meanwhile, the net interest margin (net interest margin/ NIM) banking in the eighth month was recorded at 4.43 percent, down slightly from the realization in July 2020 which amounted to 4.44 percent.

Meanwhile, Wimboh previously did not deny that the decline in bank profits was sufficient this year, it could even range from 30 percent to 40 percent.

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New wave of Covid-19 and bank data leak caused losses of up to 8% in world markets

In this context, the shares of the “old continent” registered their worst fall in three months on Monday. The Frankfurt Stock Exchange fell 4.4%; Milan and Paris fell 3.7%, while Madrid sank 3.4%, as did London. The pan-European STOXX 600 index fell 3.2%, a decline not seen since the beginning of June.

On concerns about new infections, the travel and leisure index collapsed 5.2%, accumulating its worst two-day decline since April, with airlines such as IAG – which owns British Airway – plummeting 12.1%. In addition, Lufthansa plunged 9.5% after further cutting its fleet and workforce due to the coronavirus crisis.

Parallel, European banks fell 5.7% to hover around record lows after a joint report by 108 media outlets warned of a possible link between entities such as HSBC and Deutsche Bank with astronomical amounts of “dirty money.”

These documents refer to some 2 trillion dollars (1.7 trillion euros) of transactions between 1999 and 2017 originating from drugs and criminal acts, and even from embezzled fortunes in developing countries.

For its part, on Wall Street, the Dow Jones Industrial Average fell 1.8% to 27,147.7 units; the S&P 500 lost 1.2% to 3,281.06 units and the Nasdaq Composite was down 0.1% to 10,778.80 units.

Given this climate, the CBOE volatility index of the market (VIX), a measure of investor anxiety, soared to its highest level in nearly two weeks.

The death of US Supreme Court Justice Ruth Bader Ginsburg also made it less likely that another stimulus package will pass through Congress before the November 3 presidential election, aid that remains “stalemate.” for three months.

This caused big falls in the health sector. Healthcare providers came under pressure from uncertainty about the fate of the Affordable Care Act (ACA), better known as Obamacare, with Universal Health Services shares falling sharply.

Dollar

Faced with uncertainty, the dollar rose after two weeks of declines. “What we are seeing with the dollar is a bet on a safe haven without risk,” said Erik Bregar, head of foreign exchange strategy at the Exchange Bank of Canada in Toronto, adding that the trigger was fear in European morning trading of a new confinement in the United Kingdom due to the coronavirus.

The dollar index, which compares the greenback with six prominent currencies, was up 0.85% to 93.297 units, while the euro lost 0.9% to $ 1.1734, the yen weakened 0.1 %, to 104.70 units per dollar, and the pound sterling lost 0.9%, to 1.2797 dollars.

Metals

Gold and other metals suffered sharp declines, affected by an appreciation of the dollar, in a week in which investors will be watching the speeches of the authorities of the Federal Reserve in search of clues on more stimulus measures to revive a economy hit by coronavirus.

Gold lost 2.1% to $ 1,909.05 an ounce, after hitting its lowest value since Aug. 12 earlier. Prices fell almost 10% from an all-time high reached at the beginning of last month, due to a drop in hopes for new stimuli.

“Gold should be trading higher with safe haven demand, but it’s kind of a repeat as in the spring when the market sell-off, participants have been selling assets across the board,” said Bob Haberkorn, strategist Market Senior at RJO Futures

More strongly, spot silver collapsed 8.3% to $ 24.53, its lowest level in more than a month.

Petroleum

Oil prices fell sharply due to the return of Libyan exports and fear of a new confinement due to the outbreaks of coronavirus, which would be disastrous for demand.

WTI’s barrel for October delivery lost 4.4% compared to the close on Friday and closed at $ 39.31. For its part, that of Brent from the North Sea for delivery in November fell 4% in London and ended the day at US $ 41.44.

The Libyan National Petroleum Company (NOC) announced on Saturday the resumption of crude oil production and exports in Libya at “safe” sites.

This news came the day after the Marshal who controls the east of the country, Khalifa Haftar, announced the lifting, under conditions, of the eight-month blockade imposed by his forces.

Grain

The futures of soybeans, wheat and corn collapsed this Monday in the Chicago Market, due to sales of investment funds in this context of risk aversion by the new wave of infections.

Despite sustained demand from China, soybeans suffered a loss of more than 2%, their biggest daily decline since April 1. It should be remembered that the strong demand from the Asian giant took the oilseed to its highest level in more than two years last week.

In the meantime, Wheat decreased 3.5% (US $ 7.44) and closed at US $ 203.84 per ton, in what was its largest daily percentage drop since August 2019.

Argentine assets

Amid this scenario, the S&P stock index Merval de Bolsas y Mercados Argentinos (BYMA) began on Monday with a drop of 4% but then attenuated falls to 1.8% due to the rise of the CCL dollar, which touched $ 140 and brought the exchange gap with the official dollar to 85 %, which reflects that the expectations of devaluation of the peso are still latent.

In the fixed income segment, the new bonds they closed with losses of up to 3.3%, as reflected by the decline in Bonar 2035. Sovereign bonds accumulated a loss of up to 13% last week.

In New York, the falls were more pronounced, something that was reflected in Argentine country risk, which rose 6.4% to 1,348 basis points, compared to the 1,083 basis points recorded on September 10 after reconfiguring with the new bonds.

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This is the Latest Update from OJK on Bad Credit in Bank RI

Jakarta, CNBC Indonesia – The Financial Services Authority (OJK) said that the condition of the Indonesian banking industry was still well maintained even though the economy was under pressure from the impact of Covid-19. The relaxation of banking sector policies prevented the national banking non-performing loan ratio from experiencing a significant increase.

OJK data states that the industry’s gross net performance loan (NPL) has increased but not significantly from 3.11% to 3.22%. Meanwhile, net NPL also increased insignificantly from 3.13% to 3.12%.

“This means that in the midst of a pandemic, banks are carrying out restructuring. Banks are still prudent, meaning they form net reserves, gross minus reserves. This means that in the midst of this pandemic, restructuring means that they do not form reserves, they are still careful with the form of reserves, that is a reflection. NPL net, “said Chief Executive of the OJK Banking Supervision, Heru Kristiyana, in Jakarta, Thursday (27/8/2020).

Furthermore, Heru said, the OJK will encourage banking digitization by preparing an ecosystem to speed up services. During the pandemic, many customers were afraid to come to the bank to open an account and take money for fear of contracting Covid-19.

“That’s why our ecosystem is asking for faster access to digital. There are POJKs, we told them to speed up so that they can speed up digitally,” said Heru.

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BTN Still Distributes KPR for Honorary Workers Who Are Not Affected by Covid-19

JAKARTA, KOMPAS.com – PT Bank Tabungan Negara (Persero) Tbk or BTN make sure it keeps distributing Credit Ownership Home ( KPR) for contract employees and honorariums who were not affected by the Covid-19 Pandemic.

This was done by the Company to encourage economic growth by increasing distribution credit National Economic Recovery ( PEN).

Executive Vice President Nonsubsidized Mortgage & Personal Lending Division Bank BTN Suryanti Agustinar said that the credit extension also aims to fulfill the need for its importance home for them.

“But, for those who are not affected by Covid-19 (workers), we still provide (credit), including for contract and honorary employees,” Suryanti said in a webinar, Thursday (13/8/2020).

In fact, added Suryanti, BTN also provided cash installments face (down payment) or DP of 0 percent to ASN, PNS, and TNI / Polri.

Usually, the down payment given by BTN to this group of workers is 1 percent.

Also read: BTN-Repower Offers KPR Without Installments and Interest

The low down payment was made by BTN in order to increase the interest of workers to buy a house.

In addition, BTN also synergizes with developer to free process costs, administration, and provision.

SHUTTERSTOCK/CHIRAPHAN Illustration of buying a house.

“Anyway that can make it easier and lighten consumer to buy a house, “explained Suryanti.

The fee waiver is made in the form gimmick so that consumers do not think about doing the process lags have to prepare a large fee in advance.

In fact, BTN also has a program KPR Zero which provides relief facilities to consumers up to 2 years principal-free installments.

The condition of the Covid-19 Pandemic, admitted Suryanti, Banking and developers must work together to provide various kinds innovation necessary so that consumers do not delay in buying a home.

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“Alfa-Bank” opened the first Phygital-office | Rusbase

In Moscow on the street Maroseyka very first office of “Alfa-Bank”, performed in accordance with the concept of Phygital. The Department combines physical and digital service channels. Rusbase about it have told in a press-Bank service.

“Alfa-Bank” opened the first Phygital office

Ekaterina Kochkina

In Phygital office offers several innovations.

  • Biometrics. Office system learns the face of a customer when he enters the room, if the customer previously gave his consent to it. It then sends the information about the visitor to the Bank employee. The accuracy of face recognition — 98%.
  • Planning a visit to. In a mobile application you will be requested to choose the preferred time of visit.
  • The lack of documents in paper form. All documents are signed and stored in the smartphone.
  • No special working area. Employees and customers will be able to choose any convenient place to work in the office.

“After Phygital office on Maroseyka we are opening two new branches in Moscow, and in the fall we’ll start to scale this experience in our network across the country”, — said CEO of “Alfa-Bank” Vladimir Verkhoshansky.

In the next few months, the Bank, small Phygital-the office will be open on Technopark and the flagship office at the Kuznetsk bridge. In the fall of 2020, the Bank will begin the gradual transformation of the entire network, which, according to its own data, has 525 offices in Moscow and regions of Russia.

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Putin instructed to transfer the provision of certain banking services to the remote mode

The Russian government, together with the Central Bank (CB), should develop and approve a plan to accelerate the introduction of online technologies in the financial sector, which will allow banks to provide a number of services remotely. The corresponding order was given by Vladimir Putin following the meeting held on April 23. It was devoted to plans for the implementation of measures to support the economy in terms of bank lending.

In addition, the president instructed:

  • to the government – consider changing the criteria that organizations must meet in order to receive state support due to coronavirus (in particular, this is a criterion such as revenue reduction);
  • to improve the procedure for determining the types of activities actually carried out by organizations applying for state support;
  • increase the limit of the VEB.RF state corporation on guarantees for loans granted to organizations for urgent needs;
  • to increase the maximum loan amount issued to system-forming organizations for working capital replenishment (provide a report on these items by May 20, responsible is Prime Minister Mikhail Mishustin);
  • make a decision on postponement of the annual meetings of bank shareholders with a participation share of the Russian Federation to the third quarter of 2020 (the deadline is June 1, the responsible is Mikhail Mishustin);
  • the government, together with the Central Bank, to allow banks, when determining the tax base for income tax, to recognize income in the form of interest accrued on restructured loans in the reporting period in which these interests were paid;
  • to develop and approve an action plan for the accelerated introduction of online technologies in the financial sector so that banks can remotely provide services related to the conclusion of loan agreements, mortgages, as well as customer identification using state information systems (deadline is June 1, responsible – Michael Mishustin, head of the Central Bank Elvira Nabiullina);
  • to develop measures to maintain stable dynamics of lending to the population and organizations after the end of the COVID-19 pandemic (report – until June 1, responsible – Elvira Nabiullina, Mikhail Mishustin).

The head of Sberbank German Gref said earlier that the credit holidays introduced due to the coronavirus will cost Russian banks 160 billion rubles. The Central Bank chairman said that by May Russian banks restructured loans of small and medium enterprises (SMEs) to 343 billion rubles. According to a survey conducted by Kommersant, the largest banks provide most of the borrowers who apply to them with credit vacations or their own restructuring programs. Moreover, many citizens, having received the approval of the bank, are in no hurry to use the benefits.

Details are in the material “Kommersant” “Just in case, borrowed case”.

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FirstBank and Popular satisfied with SBA loan approval



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As funding for the coronavirus Small Business Administration (SBA) emergency loan ends financial institutions in Puerto Rico could have approved over $ 609 million in loans to companies affected by the pandemic, based on the most recent figures.

Tonight, Banco Popular and FirstBank reported separately that in the past two weeks they managed $ 494 million and $ 209 million in loans in Puerto Rico under the Payment Protection Program (PPP), the initiative aimed at companies keeping their workers on the payroll despite being affected by social isolation measures to prevent the spread of COVID-19.

“The program has undoubtedly been very beneficial for small and medium businesses in these challenging times,” Ignacio Álvarez, Popular’s chief executive officer, said in written statements.

“We know that, due to limited funds, many businesses in Puerto Rico and in other parts of the United States did not have the opportunity to participate.”, added the banker, indicating that they will “closely follow developments in Congress on another possible allocation of funds.”

In the case of Popular, of the total loans granted, about $ 398 million were granted on the island and another $ 96 million, through Popular Bank, the bank’s subsidiary in the United States.

Through its president FirstBank confirmed, for its part, the approval of some $ 209 million in SBA guaranteed loans, money that will benefit some 921 clients..

Aurelio Alemán, the bank’s chief executive, maintained that this represented 80% of the total loans that were requested from clients.

“FirstBank is extremely satisfied with the results of the SBA Payroll Protection Program. Even though the process established by the federal government for the granting of these loans had multiple challenges, including constant changes in the SBA guidelines and situations with the technology provided for the processing of cases, ”Alemán said through written communication.

The chief executive clarified that The strategy to achieve these results included the establishment of a team completely dedicated to the effort, which in its case included approximately 200 people. who spent the past 10 days assisting clients through the process.

“These results are even more significant when considering the challenges of social distancing and remote work under which we are working. Key in this performance was a substantial investment in a digital platform (FINTECH) with direct integration to the SBA portal, which increased agility in the processing of cases, “he added.

Like Banco Popular, FirstBank is ready and prepared to continue that other clients also benefit from this opportunity given the potential of the approval of additional funds by the federal government.

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